The Great Eastern Hotel ( Taking Over Of Management ) Act, 1975

GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal Act XXXII of 1975 
THE GREAT EASTERN HOTEL (TAKING OVER OF 
MANAGEMENT) ACT, 1975. 
[Passed by the West Bengal Legislature.] 
[Assent of the President was first published in the Calcutta 
Gazette, Extraordinary, of the 7th September, 1975.] 
[7th September, 1975.] 
An Act to provide for the taking over of the management of the undertaking 
of the Great Eastern Hotel Limited for a limited period in the public 
interest and in order to secure the proper management thereof. 
WHEREAS it is expedient to provide for the taking over of the 
management of the undertaking of the Great Eastern Hotel Limited for a 
limited period in the public interest and in order to secure the proper 
management thereof; 
It is hereby enacted in the Twenty-sixth Year of the Republic of India, 
by the Legislature of West Bengal, as follows:- 
1. This Act may be called the Great Eastern Hotel (Taking over of Short tide. 
Management) Act, 1975. 
2. In this Act, unless the context otherwise requires,— 	 Definitions. 
(a) "appointed day" means the ninth day of July, one thousand 
nine hundred and seventy-five; 
(b) "company" means the Great Eastern Hotel Limited; 
(c) "prescribed" means prescribed by rules made under this Act; 
(d) "undertaking of the company" means the properties of the 
company, both movable and immovable, cash balances, reserve 
funds and other assets of the company including lands, 
buildings, machineries, plants, furniture, equipments, stores and 
any other property which may be in the ownership, possession, 
custody or control of the company immediately before the 
commencement of this Act. 
151 
The Great Eastern Hotel (Taking over of Management) Act, 1975. 
[West Ben. Act 
(Sections 3-6.) 
Taking over 
of manage-
ment of the 
undertaking 
of the 
company. 
Effect of an 
order made 
under 
section 3. 
3. (1) The State Government may, by an order published in the 
Official Gazette, take over the management of the undertaking of the 
company and appoint an officer not below the rank of a Deputy Secretary 
to the State Government (hereinafter referred to as the Administrator), 
for managing the undertaking of the company in accordance with the 
provisions of this Act and the rules made thereunder. 
(2) An order made under sub-section (I) shall remain in force for a 
period of three years from the date of its publication in the Official Gazette. 
4. With effect from the appointed day— 
(i) the Administrator appointed under section 3 shall have all the 
powers of management in relation to the undertaking of the 
company; 
(ii) all persons exercising any power of management in relation to 
the undertaking of the company, including persons holding 
offices as Directors, Agents or Managers, as the case may be, 
immediately before the appointed day, shall cease to exercise 
such power; 
ii) persons employed in connection with the undertaking of the 
company and continuing in office immediately before the 
appointed day shall be employed by the State Government on 
such terms and conditions, not being less advantageous than 
what they were entitled to immediately before the appointed 
day, as may be determined by the State Government by rules 
made in this behalf. 
Use of 	 5. All properties which remain under the management of the State 
Government under this Act shall be used for the purposes for which they properties
un er te 
management were being used immediately before the appointed day and upon the expiry of the State 
Govern- 	 of the period of three years the management of such properties shall revert 
ment. 	 to the company. 
Persons to 
assist the 
Adminis-
trator. 
6. (1) The State Government may apoint one or more persons, to be 
called Deputy Administrators, to assist the Administrator in carrying out 
his functions under this Act. 
(2) A Deputy Administrator shall exercise such powers and discharge 
such duties as may be entrused to him by the Administrator. 
152 
The Great Eastern Hotel (Taking over of Management) Act, 1975. 
XXXII of 1975.] 
(Sections 7-10.) 
7. (1) Any person, who— 	 Penalty. 
(a) having in his possession, custody or control any property 
forming part of the undertaking of the company, wrongfully 
withholds such property from the Administrator, or 
(b) wrongfully obtains possession of any property forming part of 
the undertaking of the company, or 
(c) wilfully withholds or fails to produce to any person authorised 
under this Act, any register, record or other document which 
may be in his possession, custody on control, or 
(d) fails, without any reasonable cause, to submit any accounts, 
books or other documents when required to do so, 
shall be punishable with imprisonment for a term which may extend 
to two years, or with fine which may extend to two thousand rupees or 
with both. 
(2) All offences under this section shall be cognizable 
Power of 
Adminis-
trator to 
institute or 
defend suits 
and pro-
ceedings. 
Advances 
by State 
Government. 
8. The Administrator shall have the power to institute, defend or take 
part in, any suit or proceeding by or against the company, relating to the 
undertaking of the company. 
9. (1) The State Government may, on the application made by the 
Administrator in this behalf, advance moneys to the company for the 
purpose of efficiently managing the business of the company and all such 
moneys shall be repaid by the company with such interest as may be 
prescribed. 
(2) Any money advanced to the company under sub-section (1) shall, 
subject to the prior payment of municipal rates and any sum due to 
Government on account of taxes or fees, be a first charge upon the 
undertaking of the company. 
10. The State Government may, if it is satisfied that it is necessary or 
expedient so to do, direct, by notification that the operation of all contracts, 
assurances of property, agreements, settlements, awards, standing orders 
or other instruments in force to which the company is a party or which 
may be applicable to the company immediately before the appointed day, 
shall remain suspended and all rights. privileges, obligations and liabilities 
Contracts, 
agreements, 
etc., to 
remain 
suspended. 
153 
The Great Eastern Hotel (Taking over of Management) Act, 1975. 
[West Ben. Act 
Overriding 
effect of 
notification 
under 
section W. 
Suspension 
or modi-
fication of 
certain 
remedies, 
etc. 
Period of 
limitation. 
(Sections 11-16.) 
accruing or arising thereunder before the said date shall remain suspended 
or shall be enforceable with such modifications and in such manner as 
may be specified in such notification. 
11. A notification issued under section 10 shall have effect 
notwithstanding anything to the contrary contained in any other law, 
agreement or instrument or any decree or order of any court, tribunal, 
officer or other authority. 
12. Any remedy for the enforcement of any right, privilege, obligation 
or liability referred to in section 10 and suspended or modified by a 
notification under that section shall, in accordance with the terms of the 
notification, remain suspended or modified, and all proceedings relating 
thereto pending before any court, tribunal, officer or other authority shall 
accordingly be stayed or be continued subject to such modification so, 
however, that on the notification ceasing to have effect— 
(a) any right, privilege, obligation or liability so suspended or 
modified shall revive and be enforceable as if the notification 
had never been issued; and 
(b) any proceeding so stayed shall be proceeded with subject to 
the provisions of any law which may then be in force from the 
stage which had been reached when the proceeding was stayed. 
13. In computing the period of limitation for the enforcement of any 
right, privilege, obligation or liability referred to in section 10, the period 
during which it or the remedy for the enforcement thereof was suspended, 
shall be excluded. 
Protection 	 14. No suit, prosecution or other legal proceeding shall lie against of action taken under the State Government or the Administrator or any other person for anything 
the Act. 	 which is in good faith done or intended to be done under this Act or the 
rules made thereunder. 
Power to 
remove 
difficulties 
Power to 
make rules 
15. If any difficulty arises in giving effect to the provisions of this 
Act the State Government may take such steps or issue such orders not 
inconsistent with this Act as may be necessary for the removal of the 
difficulty. 
16. (1) The State Government may make rules for carrying out the 
purposes of this Act. 
154 
The Great Eastern Hotel (Taking over of Management) Act, 1975. 
XXXII of 1975.] 
(Section 17.) 
West Ben. 
Ord. VI of 
1975. 
(2) In particular, and without prejudice to the generality of the foregoing 
power, such rules may provide for— 
(a) the management of the undertaking of the company, 
(b) the terms and conditions of service of the Administrator and 
other persons appointed for the purpose of carrying out the 
provisions of this Act, and 
(c) any other matter which has to be, or may be, prescribed. 
17. (1) The Great Eastern Hotel (Taking over of Management) Repeal and 
Ordinance, 1975, is hereby repealed. 	 savings.  
(2) Anything done or any action taken under the Great Eastern Hotel 
(Taking over of Management) Ordinance, 1975, shall be deemed to have 
been validly done or taken under this Act as if this Act had commenced 
on the eighth day of July, 1975. 
    
155 

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